What fees and training programs must a transferee complete for a Chem Dry franchise transfer?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
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Subject to FRANCHISEE'S compliance with these conditions, FRANCHISEE agrees to commence operation of the BUSINESS no later than ninety (90) days after the effective date of this Agreement.
3. TRAINING AND GUIDANCE
A. INITIAL AND NEW BUYER TRAINING
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- Unless you are an existing franchisee, CDI shall furnish an initial training program on the operation of a CHEM-DRY Business which FRANCHISEE is required to complete to CDI's satisfaction prior to FRANCHISEE'S commencement of BUSINESS operations. CDI agrees to provide FRANCHISEE with initial training on how to (1) mix and apply cleaning solutions, use equipment in cleaning the work product and performing the services required for a CHEM-DRY business under normal working conditions; (2) compute estimates; (3) solicit and maintain business; and (4) replace inventory and otherwise enter into and conduct a CHEM-DRY Business. If FRANCHISEE purchases a new franchise from CDI, FRANCHISEE will be required to attend a training session Logan, Utah, or at another location designated by CDI prior to operating the CHEM-DRY Business. If FRANCHISEE is a transferee, FRANCHISEE must complete the training required in this section 3.A. within ninety (90) days of FRANCHISEE'S execution of this Agreement by attending a training session in Logan, Utah or at another location designated by CDI.
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- FRANCHISEE is responsible for all compensation, benefits, taxes, insurance, travel expenses and living expenses which are incurred in connection with attending the training program. The Initial Package includes training tuition for two people to attend training. CDI may charge tuition for additional trainees and for training associated with the transfer of an existing franchise. The tuition amount as of the Effective Date is $75.00 per day per attendee.
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- If CDI determines, in its sole discretion, that FRANCHISEE failed to satisfactorily complete the training program, CDI shall have the right to require that FRANCHISEE attend the next initial training program at FRANCHISEE'S expense (including tuition charged by CDI and all compensation, benefits, taxes, insurance, travel and living expenses incurred), or that FRANCHISEE view CDI's web-based training or other media and pass the accompanying test(s). If FRANCHISEE'S performance in the additional training program is unsatisfactory or if FRANCHISEE fails to complete the training, FRANCHISEE'S Business Note signed in connection with this Agreement will be accelerated and immediately due and payable and CDI shall have the right to terminate this Agreement effective immediately.
B. ONGOING TRAINING
- FRANCHISEE is required to complete at least one (1) in-person training course per year and the online training. The initial training will fulfill the training requirement for the calendar year in which this Agreement is dated. In subsequent calendar years, you are required to complete at least one in-person training course per calendar year and various online or other electronic training modules or seminars as required for each authorized service the BUSINESS
offers.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, a transferee must complete the training program and pay a transfer fee. Specifically, a Chem-Dry franchisee who is a transferee must complete the training required in section 3.A within ninety (90) days of the execution of the Franchise Agreement by attending a training session in Logan, Utah, or at another location designated by CDI. The transferee must also pay Chem Dry's then-current transfer fee as set forth in the Summary Page of the Franchise Agreement, which may be increased once per calendar year to reflect increases in the Consumer Price Index. The transfer fee is due upon Chem Dry's preparation of the required transfer documentation and is non-refundable at such time.
The training tuition amount as of the Effective Date is $75.00 per day per attendee. The franchisee is responsible for all compensation, benefits, taxes, insurance, travel expenses, and living expenses incurred in connection with attending the training program.
In addition to the transfer fee and training, the transferee must meet several other conditions for the transfer to be approved. These include demonstrating good character and sufficient business experience, assuming all of the existing franchisee's obligations, not engaging in a competitive business, and signing Chem Dry's current form of franchise agreement. The transferee must also purchase or obtain all equipment CDI requires to operate a Chem-Dry business, if not included in the transaction.